Corn prices saw a wild week with very large price swings twice! When news broke about China adding soybeans to the list of products from the U.S. that would have a 25 percent tariff corn dropped too.
That first occurred in the overnight session. By the close of the day session corn was about unchanged. Then later in the week there was more trade war with China talk and corn dropped again. However, by the close again corn recovered all the losses.
This has to be a little concerning for the bears. A major supporting factor has to be the sever drought in Argentina.
It was the same pattern in soybeans. When trade war talk with China surfaced beans were down about 50 cents a bushel, twice. By the close Friday beans were a little firmer.
The key going forward is the USDA Supply Demand Report Tuesday morning at 11:00. Will the USDA drop the crop in Argentina as much as the local agencies in Argentina?
Will the USDA raise soybean production in Brazil? For quite some time the bears were saying the crop losses in Argentina were being offset by increasing yields in Brazil. At this point most have conceded that is not the case.